Interesting outside week developed in NG. Found support at weekly lower BB. Target 2.95 and further 3.2, especially when downtrend line 1 is taken out.
After a potential exhaustion gap yesterday, prices have recovered which increases the probability that yesterday was indeed an exhaustion gap. The price chart is forming a potential falling wedge and cup and handle failure pattern with an RSI divergence.
I suggest taking a trade:
Enter with 1/3 position now. Add 1/3 if prices close above 2.62 and add the last...
This is a long term trade. We have some technical and fundamental reasons to buy the gas.
Technically, we see the price is rejecting from a long term support:
On D1 chart the price made a false break and today opened with a gap. A nice chance to enter with a better R/R ratio. There is a double bullish divergence on MACD in play.
The SL and target levels are...
go long NG, but if we have a daily close below the base of the triangle, we are out...
Sentiment is extremely negative, traders are long at historical levels, and seasonality is helping... BUT we only want to be long above 2.70 aprox...
Natgas (NGJ15) continues its bear trend towards 2.000. A trade below the pivot low and trend-line confirms the short set-up with first target 2.45 by Friday (13mar15). A strong close below the ML would be extremely bearish opening to more selling pressure towards the lower parallel
